Many Economists Would Argue That Some Frictional Unemployment

question 78

Multiple Choice

Many economists would argue that some frictional unemployment

• A) creates massive economic disruptions and should be eliminated as quickly as feasible.
• B) should be eliminated whatever the cost.
• C) no longer exists because increased unemployment benefits have generally solved this problem.
• D) cannot and probably should not be eliminated.

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Definitions:

Unit Elastic

A situation in which the percentage change in quantity demanded is equal to the percentage change in price, leading to a unitary elasticity of demand.

Elastic Portion

The segment of a demand curve where a change in price leads to a more than proportional change in the quantity demanded, indicating high price sensitivity.

Linear Demand

A type of demand where there is a constant relationship between the quantity demanded and price, represented by a straight line on a graph.